Establishing veterans' affordable housing preference; authorizing bonus fair share credit for veterans' affordable housing.

A224

ASSEMBLY, No. 224

STATE OF NEW JERSEY

222nd LEGISLATURE

�

PRE-FILED FOR INTRODUCTION IN THE 2026 SESSION

Sponsored by:

Assemblyman JOHN V. AZZARITI JR., M.D.

District 39 (Bergen)

Assemblyman� GERRY SCHARFENBERGER

District 13 (Monmouth)

Co-Sponsored by:

Assemblymen Barlas, Venezia and Rumpf

SYNOPSIS

���� Establishing veterans' affordable housing preference;
authorizing bonus fair share credit for veterans' affordable housing.

CURRENT VERSION OF TEXT

���� Introduced Pending Technical Review by Legislative
Counsel.

��

An Act
concerning veterans� affordable housing preference and
fair share bonus credit, and amending and supplementing P.L.1985, c.222.�

����
Be It
Enacted
by the Senate and General Assembly of
the State of New Jersey:

���� 1.�
Section
11 of P.L.1985, c.222 (C.52:27D-311) is amended to read as follows:

���� 11.� a.� In adopting its
housing element, the municipality may provide for its fair share of low and
moderate income housing by means of any technique or combination of techniques
which provide a realistic opportunity for the provision of the fair share.� The
housing element shall contain an analysis demonstrating that it will provide
such a realistic opportunity, and the municipality shall establish that its
land use and other relevant ordinances have been revised to incorporate the
provisions for low and moderate income housing.� In preparing the housing
element, the municipality shall consider the following techniques for providing
low and moderate income housing within the municipality, as well as such other
techniques as may be published by the council or proposed by the municipality:

���� (1)�� Rezoning for densities
necessary to assure the economic viability of any inclusionary developments,
either through mandatory set-asides or density bonuses, as may be necessary to
meet all or part of the municipality's fair share in accordance with the regulations
of the council and the provisions of subsection h. of this section;

���� (2)�� Determination of the
total residential zoning necessary to assure that the municipality's fair share
is achieved;

���� (3)�� Determination of
measures that the municipality will take to assure that low and moderate income
units remain affordable to low and moderate income households for an
appropriate period of not less than six years;

���� (4)�� A plan for
infrastructure expansion and rehabilitation if necessary to assure the
achievement of the municipality's fair share of low and moderate income
housing;

���� (5)�� Donation or use of
municipally owned land or land condemned by the municipality for purposes of
providing low and moderate income housing;

���� (6)�� Tax abatements for
purposes of providing low and moderate income housing;

���� (7)�� Utilization of funds
obtained from any State or federal subsidy toward the construction of low and
moderate income housing;

���� (8)�� Utilization of
municipally generated funds toward the construction of low and moderate income
housing; and

���� (9)�� The purchase of
privately owned real property used for residential purposes at the value of all
liens secured by the property, excluding any tax liens, notwithstanding that
the total amount of debt secured by liens exceeds the appraised value of the
property, pursuant to regulations promulgated by the Commissioner of Community
Affairs pursuant to subsection b. of section 41 of P.L.2000, c.126
(C.52:27D-311.2).

���� b.��� The municipality may
provide for a phasing schedule for the achievement of its fair share of low and
moderate income housing.

���� c.���� (Deleted by amendment,
P.L.2008, c.46)

���� d.��� Nothing in P.L.1985,
c.222 (C.52:27D-301 et al.) shall require a municipality to raise or expend
municipal revenues in order to provide low and moderate income housing.

���� e.���� When a municipality's
housing element includes the provision of rental housing units in a community
residence for the developmentally disabled, as defined in section 2 of
P.L.1977, c.448 (C.30:11B-2), which will be affordable to persons of low and
moderate income, and for which adequate measures to retain such affordability
pursuant to paragraph (3) of subsection a. of this section are included in the
housing element, those housing units shall be fully credited as permitted under
the rules of the council towards the fulfillment of the municipality's fair
share of low and moderate income housing.

���� f.���� It having been
determined by the Legislature that the provision of housing under P.L.1985,
c.222 (C.52:27D-301 et al.) is a public purpose, a municipality or
municipalities may utilize public monies to make donations, grants or loans of
public funds for the rehabilitation of deficient housing units and the
provision of new or substantially rehabilitated housing for low and moderate
income persons, providing that any private advantage is incidental.

���� g.��� A municipality which has
received substantive certification from the council, and which has actually
effected the construction of the affordable housing units it is obligated to
provide, may amend its affordable housing element or zoning ordinances without
the approval of the council.

���� h.��� Whenever affordable
housing units are proposed to be provided through an inclusionary development,
a municipality shall provide, through its zoning powers, incentives to the
developer, which shall include increased densities and reduced costs, in
accordance with the regulations of the council and this subsection.

���� i.���� The council, upon the
application of a municipality and a developer, may approve reduced affordable
housing set-asides or increased densities to ensure the economic feasibility of
an inclusionary development.

���� j.�
(1)
� A
[
municipality
may enter into an agreement with a
]

developer
[
or
]

,

residential development owner
[
to
]

, or
administrative agent for affordable housing in a municipality, as applicable,
shall
provide a preference for
both rental and ownership
affordable
housing to low to moderate income veterans
[
who
served in time of war or other emergency, as defined in section 1 of P.L.1963,
c.171 (C.54:4-8.10), of up to 50
]

, regardless of war service, of the United States Armed Forces, or a Reserve
Component thereof, or the New Jersey National Guard.� The veterans preference
shall be applicable to no less than 50
percent of the affordable units in
[
that
]

a

particular project.� This preference shall be established in the applicant
selection process for available affordable units so that applicants who are
veterans
[
who
served in time of war or other emergency
]

, as referenced in this subsection, and who apply within 90 days of the initial
marketing period shall receive preference for the
[
rental
]

occupancy
of the
agreed-upon percentage of affordable units.� After the first 90 days of the
initial 120-day marketing period, if any of those units subject to the
preference remain available, then applicants from the general public shall be
considered for occupancy.� Following the initial 120-day marketing period,
previously qualified applicants and future qualified applicants who are
veterans
[
who
served in time of war or other emergency
]

, as referenced in this subsection, shall be placed on a special waiting list
as well as the general waiting list.� The veterans on the special waiting list
shall be given preference for affordable units, as the units become available,
whenever the percentage of preference-occupied units falls below the agreed
upon percentage.� Any
[
agreement
to provide
]

affordable housing preferences for veterans
provided
pursuant to this
subsection shall not affect a municipality's ability to receive credit for the
unit from the council, or its successor.

����
(2)� In addition to the
affirmative marketing otherwise required for affordable units, the Adjutant
General of the Department of Military and Veterans Affairs shall provide
appropriate outreach to veterans to enhance awareness of the veterans
preference and the steps necessary to take advantage of the preference.� In
order to facilitate appropriate outreach to veterans, the Adjutant General
shall maintain a registry of veterans who have expressed interest in, or may be
eligible for, affordable housing, and the regions or municipalities in which
the veterans live, or would be willing to live, should affordable housing
become available.� In order to ensure that affordable units are offered to
eligible veterans before non-veterans, in accordance with the requirements of
this subsection, the Adjutant General shall coordinate with the council or its
successor, the department, the agency, and developers and residential
development owners.

(cf: P.L.2013, c.6, s.1)

���� 2.� (New section)� Notwithstanding
any limitation on the percentage of a municipality�s fair share obligation that
may be satisfied through bonus credits, the municipality shall receive one unit
of credit and one-half bonus credit for each unit of housing occupied or reserved
for occupancy by a low or moderate income veteran, regardless of war service, of
the United States Armed Forces, or a Reserve Component thereof, or the New
Jersey National Guard, pursuant to subsection j. of section
11 of P.L.1985, c.222 (C.52:27D-311)
.

���� 3.� The Commissioner of
Community Affairs,
in accordance
with the "Administrative Procedure Act," P.L.1968, c.410 (C.52:14B-1
et seq.), and in consultation with the Adjutant General of the Department of
Military and Veterans Affairs, shall adopt the rules and regulations necessary
to effectuate
P.L.��� , c.��� (C.�����
) (pending before the Legislature as this bill) on or before the effective date
of P.L.��� , c.��� (C.����� ) (pending before the Legislature as this bill)
.

���� 4.� This act shall take effect
on the first day of the fourth month next following enactment.�

STATEMENT

���� This bill would establish a
veterans� affordable housing preference, and would offer municipalities bonus
fair share credits for veterans� affordable housing.� Specifically, the bill
would require the developer, residential development owner, or administrative
agent for affordable housing in a municipality to provide a preference to low
to moderate income veterans, regardless of war service, of the United States
Armed Forces, or a Reserve Component thereof, or the New Jersey National Guard,
with regard to no less than 50 percent of the affordable units in a project.�
This requirement would apply to both rental and ownership affordable housing.�
Under existing law, municipalities are permitted to enter into agreements with
owners and developers to establish similar veterans preferences for up to 50
percent of the housing in a development.� This bill would require a veterans
preference for no less than 50 percent of the housing in a development.�

���� In addition to the affirmative
marketing otherwise required for affordable units, the bill directs the
Department of Military and Veterans Affairs to provide appropriate outreach to
veterans to enhance awareness of the veterans preference and the steps
necessary to take advantage of the preference.� In order to facilitate
appropriate outreach to veterans, the bill requires the department to maintain
a registry of veterans who have expressed interest in, or may be eligible for,
affordable housing, and the regions or municipalities in which the veterans
live, or would be willing to live, should affordable housing become available.�
In order to ensure that affordable units are offered to eligible veterans
before non-veterans, in accordance with the requirements of this bill, the bill
requires the department to coordinate with the council or its successor, the
department, the agency, and developers and residential development owners.

���� Additionally, the bill
provides that a municipality would receive one unit of credit and one-half
bonus credit for each unit of housing occupied or reserved for occupancy by a
low or moderate income veteran.

���� The bill requires the
Commissioner of Community Affairs to adopt rules and regulations, in
consultation with the Adjutant General
of the Department of Military and Veterans Affairs, to effectuate the purposes
of the bill on or before the effective date of the bill.� The bill would
take
effect on the first day of the fourth month next following enactment.